Whether you are a homeowner or renter, when relocating to a new, unfamiliar area, you certainly would appreciate assistance from your employer. Whether you're a senior executive or a new lower-level hire, all relocating employees can use employer help in finding a new residence.
The best employee relocation policies contain this important feature. They can take various forms, all of which are helpful to transferees. In addition to the obvious monetary benefits, home finding assistance greatly reduces the employee's stress level.
This result is particularly beneficial to employer expectations of transferred employee productivity in the new location. Happy, stress-free employees are productive employees.
Setting reasonable parameters offers cost containment and management benefits for employers. Expense management and control must be matched with valuable benefits for your employees. Home finding assistance and one or more reimbursed house hunting trips achieve this goal.
Common Components in Relocation Programs
Finding a new home is stressful for employees in good or bad real estate markets. Reducing this stress level by offering home-finding help is always important. The best executive relocation policies usually feature some consistent benefits, like:
- Hasten and smooth the procedure of locating, buying and occupying the employee's new home
- Provide for one or two home-finding excursions, for seven to 10 days total, for both the transferee and his/her spouse or domestic partner
- Help selecting a trained and experienced real estate professional.
- Reimbursement for normal and customary house hunting expenses on an "as-submitted" or lump sum basis.
While neither employee nor employer wants transferees to "rush to judgment" in selecting their new home, speed and efficiency are essential. The move must be completed as quickly as possible to have your employee become productive at the new location. Employers need this result. Transferees also need to minimize moving stress and get their families settled into new homes as smoothly as possible.
Most Common Home-Finding Expense Reimbursements
Transportation costs. Including airfare, auto rentals, mileage costs and appropriate miscellaneous expenses (tolls, parking, auto service, etc.)
Temporary lodging. Including hotels, motels or other short-stay options for the house hunters.
Food and meals. Most solid relocation policies offer per diem allowances of around $40 per day, per adult house hunter, without requiring receipt submission. When no per diem allowance is offered, transferees submit receipts for family meal reimbursement.
Daily child care costs. Common allowances are around $50 per day per child, up to a maximum $100 per day for all minor children.
These covered expenses, along with other miscellaneous reimbursements, apply directly to the home finding activities of the transferee. Home sale and/or purchase assistance is covered in additional policy areas. House hunting assistance reimbursement parameters and maximum amounts, if any, are specified or negotiated as needed, per policy language.